Saturday, 3 August 2019

THE National Social Security Authority (Nssa) splashed
millions of dollars on bad investments, luxuries for board members and hefty
salary perks for executive management, at a time when pensioners were wallowing
in poverty.

Nssa is a statutory body created through an Act of
Parliament in 1989 to provide social security to pensioners.

But a forensic audit by BDO Zimbabwe Chartered Accountants
as contracted by the Auditor General’s Office for the periodJanuary 1 2015 toFebruary 28 2018, the board and management
focused on cutting shady loans and housing deals with top local banks and shelf
companies to milk the fund. The audit report has opened a can of worms with
Public Service, Labour and Social Welfare Minister Prisca Mupfumira already in
remand prison over allegations of corruption cases involving US$95 million.

While the pension contributors are getting a pittance,
about $80 per month, the report says Nssa executives were living lavishly with
the then general manager Mrs Elizabeth Chitiga earning US$24 000 per month
while the other nine top executives were each paid US$17 000 monthly.

The forensic audit report revealed that the then Public
Service, Labour and Social Welfare Permanent Secretary Mr Ngoni Masoka approved
salary adjustments for top executives from December 2017 to September 2018.

The salary increase was supposed to be approved by the
Minister of Public Service, Labour and Social Welfare in accordance with the
Nssa Act. As a result Nssa paid out US$291 089 to top managers without
following due procedure, the report further shows. In 2015, Nssa managers also
paid themselves 50 percent of their basic salaries as bonuses without
ministerial approval while almost US$2 million was paid as managerial bonuses
in 2017.

Some Nssa employees were given housing loans which were far
beyond their limit, for instance, Ms Daisy Madume, a personal assistant to the
general manager, accessed US$189 000 instead of US$147 000. Ms Madume bought a
house for US$151 291 and had US$37 710 to spare.

Another Nssa manager Mr James Chiuta was given a vehicle
worth US$57 000 instead of US$44 820.

The parastatal coughed out about US$300 000 in board fees
between 2015 and 2017. “As a result of the Permanent Secretary’s actions, with
effect from the 4th quarter of 2017, board members were paid incorrect and
unapproved board fees,” reads the report in part.

“We have treated all payments made as a result of Mr
Masoka’s approval and the irregular implementation as an overstatement.

“The total overstatement due to the 50 percent increment
and the irregular implementation amounted to $86 322 as at the end of third
quarter of 2018.”

The Nssa board spent $41 000 in sitting allowances for a
retreat meeting in Nyanga in 2017.

The company engaged an investment expert Mr Fungai Ruwende
onNovember 11 2015 who was based in
South Africa and Nssa had to pay airfares and hotel expenses.Mr Ruwende was paid US$15 000 from December 1
2015 to June 30 2018.

Auditors further questioned the employment of an ICT expert
Mr Bernard Machicha yet there was no evidence whether there was an invitation
for expression of interest in providing ICT to Nssa.

Mr Machicha earned US$20 000 per month and “it could not be
determined how the salary awarded to Mr Machicha was arrived at. The
remuneration framework approved by the Minister at the time had the highest
salaries pegged at US$17 470 for the general manager and US$15 210 for other
directors”.

Pensioners’ money was used to renovate Nyanga Chalets at a
cost of US$221 000 without board approval yet other contractors had charged
US$150 000.

“Ballantyne Park was purchased for US$2,2 million yet the
valuation report recommended a price ranging between US$1 405 000 and US$1 500
000. The property was eventually impaired resulting in a net financial
prejudice of US$464 000 based on subsequent revaluations carried out in the
three years under review,” noted the auditors.

It was puzzling for auditors as to why and how Nssa could
have spent US$890 000 to refurbish Cornerstone House – a price way more than
its purchase tag of US$650 000. The building is not generating any revenues and
it is maintained at a cost of US$6 062 per month.

Furthermore, the report shows that the authority could have
wasted pensioners money after buying Christmas Gift Gweru property for US$7, 4
million against a valuation of US$4,8 million.

More money went down the drain at the Beitbridge Hotel
which was pegged at US$49 million instead of US$3 million.

The audit unearthed that there were a number of buildings
and land worth over US$15 million which was not registered in Nssa’s name,
hence the authority cannot claim ownership of the properties.

“There are 28 properties which are in the financial
statements of Nssa, but the title deeds are either in the name of the parent
ministry or the Workers’ Compensation Fund.

“Nssa should review circumstances in which title is held
due to failure to satisfy council conditions and come up with a plan to ensure
that such conditions are fulfilled.

“The authority should also speed up the process of
transferring title from parent ministry and Workers’ Compensation Fund,” said
the auditors.